While the balance of trade is the difference between the monetary value of exports and imports, the balance of payments

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Social Studies

Janiah

12 October, 20:13

While the balance of trade is the difference between the monetary value of exports and imports, the balance of payments

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Melanie Avila · Answer 1

The balance of payments is the record of all economic transactions between the residents of a country (including consumers, businesses and government) and the rest of the world over a specified period of time (for example, a year). As such, the balance of payments tells us how much has been spent on imports, and how much has been received for exports.